Chapter 12 :
Analysis and Interpretation of financial ftateme
Finance in decision making
customer Decision :
Customers want to
buy from companies that:
continue service the future
→
goods and
production in
→
customer
provide service
of
Financial
's
statement shows
profitability and
efficiency
company operations
↳
Customers likelihood
and service
can
now
see
and in the
supplier
future .
delivering good
Supplies Decision :
Supplier want to know :
for
can
they pay purchased goods
→
.
.
for products future
they in
→
can continue and
purchase pay .
Employment Decision :
→
provide a competitive salary and benefit
to have increased
→
prepare employee responsibility
?
→
employee has job security
-
Union uses financial statement to seek for better wage and
benefits .
•
Union
may
also
accept lower wage and benefit to help employer
stay in
operations -
,Credit Decision
Person needs to if borrower loan interest
giving know can
repay
+
-
,
.
→ Loan + interest
repaid
with current alerts .
(cash ,
sales , redoubles]
Short -
term lenders thus care about current meets + current liabilities .
Working Capital Current Assets
= -
Current liabilities
Long term loan interest
paid from profits over time
-
-
.
interested in the firms
They
↳ :
are
•
future profits
amount of claims
-
our
profits
(dividends ,
payments ,
investments)
statement of Financial Position borrower's current
liquidity
:
Profitability data (statement of Earnings) :
Forecast future
profitability
Cash flow :
forecasting the amount and
dining of future claims d
profits .
, Investment Decision
that return frame
Investors
buy
shares
expect to earn :
-
→ Dividends
Increase in value of the shares [ capital )
gain
→
& Shane depend the future
profitability
-
Dividends value on
of the
company
↳
Larger Profits =
more resources to dividends &
invest in business repay
factors
Taking industry
under account economic and
•
future
is
important when
predicting profits .
Quantitative = ratios shows concerns for brained & how to
analysis
improve
Qualitative business
strategy
-
=
analysis .
Risks
-
Internet + External factor
Analysis and Interpretation of financial ftateme
Finance in decision making
customer Decision :
Customers want to
buy from companies that:
continue service the future
→
goods and
production in
→
customer
provide service
of
Financial
's
statement shows
profitability and
efficiency
company operations
↳
Customers likelihood
and service
can
now
see
and in the
supplier
future .
delivering good
Supplies Decision :
Supplier want to know :
for
can
they pay purchased goods
→
.
.
for products future
they in
→
can continue and
purchase pay .
Employment Decision :
→
provide a competitive salary and benefit
to have increased
→
prepare employee responsibility
?
→
employee has job security
-
Union uses financial statement to seek for better wage and
benefits .
•
Union
may
also
accept lower wage and benefit to help employer
stay in
operations -
,Credit Decision
Person needs to if borrower loan interest
giving know can
repay
+
-
,
.
→ Loan + interest
repaid
with current alerts .
(cash ,
sales , redoubles]
Short -
term lenders thus care about current meets + current liabilities .
Working Capital Current Assets
= -
Current liabilities
Long term loan interest
paid from profits over time
-
-
.
interested in the firms
They
↳ :
are
•
future profits
amount of claims
-
our
profits
(dividends ,
payments ,
investments)
statement of Financial Position borrower's current
liquidity
:
Profitability data (statement of Earnings) :
Forecast future
profitability
Cash flow :
forecasting the amount and
dining of future claims d
profits .
, Investment Decision
that return frame
Investors
buy
shares
expect to earn :
-
→ Dividends
Increase in value of the shares [ capital )
gain
→
& Shane depend the future
profitability
-
Dividends value on
of the
company
↳
Larger Profits =
more resources to dividends &
invest in business repay
factors
Taking industry
under account economic and
•
future
is
important when
predicting profits .
Quantitative = ratios shows concerns for brained & how to
analysis
improve
Qualitative business
strategy
-
=
analysis .
Risks
-
Internet + External factor
